The rupee strengthened by 10 paise against the US dollar to 56.07 in early trade today at the Interbank Foreign Exchange market, on the back of euro gains against the American currency overseas. Dealers said, selling of dollars by exporters and euro's gains against the American currency mainly supported the rupee. The rupee had yesterday's sunk to 10-month lows before closing with 21-paise loss at 56.17, making imports costlier that is likely to worsen government's Current Account Deficit woes